Elliott Wave Analysis: USDJPY And GBPJPY

USDJPY keeps moving lower, but it looks like bears are losing strength based on a wedge shape that looks like an ending diagonal placed in wave C. Also, there is strong divergence on RSI which suggests limited downside as well. Ideally, we will see bounce this week, but it’s important to wait on break above upper channel line before we may consider any long trades here.

USDJPY Hourly Chart

If USDJPY would really turn higher, then one of very interesting yen crosses can also be GBPJPY, which has a clean structure here; impulse up from January low and now deep three waves down. It’s a contra-trend move that is now trading at potential support. Rise above 142.00 swing would be important indication for higher prices ahead.